AT&T (NYSE:T) was surging midday Tuesday after reporting better-than-expected earnings in the morning.
The nation’s second-largest wireless provider reported profits of $3.6 billion (60 cents per share), about 2% better than last year’s $3.4 billion and ahead of Thomson Reuters-polled analyst estimates for 57 cents per share, according to The New York Times. Revenues of $31.8 billion also were up about 2%, to $575 million, though slightly below estimates for $31.86 billion.
The company credits some of its recent success to strong revenues from its mobile and wireless product line.
“Smartphone and branded computing device sales continue to set a record pace, mobile data revenues were up nearly 20 percent, and we achieved this growth with expanding margins,” AT&T Chairman and CEO Randall Stephenson said in a press release.
AT&T reported $5.5 million in smartphone sales, which exceeded the company’s first-quarter sales record set last year. Smartphones represented more than 78% of postpaid device sales. The company activated 4.3 million Apple (NASDAQ:AAPL) iPhones in the first quarter of this year; 21% of those activations were for new AT&T customers. AT&T credited its 4G network to the high number of activations.
Also during the first quarter, AT&T began repurchasing shares under its outstanding 300 million-share buyback authorization. The company repurchased 67.7 million shares for $2.1 billion during the period.